GSM is the current 2G cellphone standard used here in the UK & many countries elsewhere. It's digital but can only support data speeds of 9600. A minority of networks also support HSCSD (High Speed Circuit Switch Data) which operates at 14.4.
The recent released GPRS standard is an extension to the GSM technology and is often dubbed 2.5G. It can operate at speeds faster than a dial-up connection. It is also an 'always-on' connection, i.e its always connected whether you're sending/receiving data or just chatting on a voice call, so you only EVER have to connect once and you're instantly notified as soon as a new message hits your inbox. You're also not charged by the duration of your time online, but by the amount of data you send or receive. Due to it's recent introduction though, it's not available on all GSM networks and is only for contract (pay-monthly) customers. It's also pretty expensive atm becuase networks want to recoup the money invested in the technology. Currently it's about £4 for 5 megs!!
You also need to have a GPRS capable handset (or data card). I use it with a T68 & Ipaq 3870 and it definitely rocks! There's defintely something cool about keeping your phone in your pocket (connected via bluetooth), while surfing the net at high speed on your PPC!

But 3G looks even more impressive... I'm lucky enough to be previewing the 3G trial in progress on the Isle of Man next month, so i'll keep u posted! Imagine... broadband speed internet while walking down the street...Mmm!